The End of Duty-Free: U.S. Withdraws De Minimis Privileges for Chinese Imports

The Trump administration has ceased U.S. duty-free privileges for low-value items from China and Hong Kong. The change affects e-commerce firms and traffickers of illicit goods. The de minimis exemption, allowing items under $800 to bypass tariffs, has been controversial due to trade imbalances and synthetic opioid imports.

The Trump administration has ended the United States' duty-free access for low-value shipments from China and Hong Kong, effective May 2. This decision targets the "de minimis" exemptions previously used by e-commerce companies like Shein and Temu, as well as traffickers of illicit drugs.

Following talks aimed at easing trade tensions between the U.S. and China, new tariff rates for small packages valued at up to $800 were released on May 13. Items sent from China through postal services will now face a 54% tax on their value or a $100 per package fee, a reduction from the previously imposed 120% tariff.

The introduction of new tariffs underlies broader criticism surrounding de minimis rules, which have enabled millions of shipments to bypass standard customs checks. Critics argue this loophole allows companies to sidestep tariffs and inspections on Chinese goods, amidst rising concerns over trade imbalances and the nation's fentanyl crisis.

(With inputs from agencies.)